What Has Happened?
Following the albeit delayed launch of EOS earlier this month, everyone in the Cryptocurrency industry breathed a sigh of relief. However, the relief was soon overtaken by shock as it came to light that as the product was finally released seven accounts were locked. The reason behind this big decision was a bid to ensure the safety and security of EOS and its customers. As always with the Cryptocurrency market, there are two very different opinions on the above move.
Over the weekend, the final big step of migrating customer wallets from Ethereum to EOS took place. This involved the transfer of customer’s funds from their temporary Ethereum home to their new permanent EOS wallet fixture. As part of this, users needed to provide the details of their wallet addresses on EOS. Sadly – but not unexpectedly – scammers were on hand to try and attain as much money as possible from unsuspecting customers. This is something which is not only prevalent in the Cryptocurrency industry, but worldwide with cases occurring daily. Unfortunately, some customers did provide their private key details to said fraudsters and accounts were hacked. The result could have been over $20,000 being stolen. However, the very very fast thinking and acting 21 EOS block producers froze said accounts before anything terrible could happen.
Safety And Security
Although the EOS whole launch process was very controversial in many ways especially with the provision of the open-source code for the EOS community to take the final step of testing and launching. However, you absolutely cannot fault the EOS team for their security measures during the final migration. As part of this final step, customers had to “stake” their EOS tokens in order for them to be transferred from the Ethereum wallets to the EOS wallets. This therefore meant that although a handful of accounts were actually hacked, the scammers were not in a position to sell the tokens because of the security measures in place. This included “unstaking” their EOS tokens and then waiting 72 hours for this procedure to be completed. There were several contested cases and shouts of fraud during the migration which were in the hands of the EOSIO Core Arbitration Forum (ECAF). However ECAF did not make a decision on any of the cases citing that it was not in the legal position to be able to do so. So, the block producers stepped in as one team and froze the accounts where fraudulent activity had occurred. This was in order to give the ECAF time to resolve any background issues and make a final decision based on the case details.
Why The Complaints?
As highlighted above, there are always two sides of the fence in any Cryptocurrency topic. With this particular instance, many see the result as a great success for EOS and the Cryptocurrency industry as a whole. However, some have stated that the block producers have over stepped the mark when they are not legally entitled to freeze accounts. The official guardians of EOS have yet to be confirmed by the users so there are a few that are up in arms about the decision of the block producers. This set of individuals are not thinking about the money saved from scamming or the fact thats fraud was actually stopped in the process. But until the governance of EOS has been confirmed by users, there will still be such arguments. Let’s hope there are not too many before the final legal processes are completed.